Pfizer Inc (PFE)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 11,113,000 | 6,943,000 | -1,212,000 | 1,140,000 | 3,516,000 | 12,502,000 | 24,471,000 | 33,184,000 | 35,969,000 | 34,565,000 | 33,414,000 | 28,599,000 | 24,314,000 | 17,927,000 | 13,028,000 | 9,497,000 | 7,641,000 | 8,794,000 | 16,668,000 | 17,805,000 |
| Interest expense (ttm) | US$ in thousands | 3,090,000 | 3,039,000 | 2,951,000 | 2,681,000 | 2,209,000 | 1,834,000 | 1,450,000 | 1,235,000 | 1,239,000 | 1,241,000 | 1,255,000 | 1,278,000 | 1,292,000 | 1,324,000 | 1,415,000 | 1,471,000 | 1,525,000 | 1,593,000 | 1,586,000 | 1,603,000 |
| Interest coverage | 3.60 | 2.28 | -0.41 | 0.43 | 1.59 | 6.82 | 16.88 | 26.87 | 29.03 | 27.85 | 26.62 | 22.38 | 18.82 | 13.54 | 9.21 | 6.46 | 5.01 | 5.52 | 10.51 | 11.11 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $11,113,000K ÷ $3,090,000K
= 3.60
Pfizer Inc's interest coverage ratio is a metric used to evaluate the company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio indicates a stronger ability to meet interest obligations.
Based on the data provided, Pfizer Inc's interest coverage ratio has shown fluctuations over the years. It was relatively stable at around 10-11 times from March 2020 to June 2021. There was a significant improvement in the ratio from September 2021 to December 2022, reaching a peak of 29.03 in December 2022, indicating a substantial increase in the company's ability to cover its interest expenses.
However, the interest coverage ratio started declining from March 2023 onwards, dropping to 0.43 by March 2024, and turning negative in June 2024. This decreasing trend suggests a potential strain on Pfizer Inc's ability to cover its interest expenses with its operating income. It is important for investors and analysts to closely monitor this ratio to assess the company's financial health and debt repayment capacity.
Peer comparison
Dec 31, 2024